IPCC to investigate missing HMRC data discs

After a massive security breach at Her Majesty's Revenue and Customs (HMRC) exposed 25 million people to the prospect of identity fraud, an investigation has been launched to ascertain whether the mistake was an isolated or systemic incident.

The Independent Police Complaints Commission (IPCC) announced they will be investigating the circumstances surrounding how the department came to lose two computer discs carrying the bank account details of 25 million child benefit recipients.

The IPCC investigation is separate from the immediate search being carried out by the Metropolitan police, which has a team of officers currently hunting for the missing data at the Tyne and Wear HMRC building at the heart of the debacle.

Gary Garland, IPCC commissioner with responsibility for HMRC, said: "The focus of our investigation will be to identify the causes of this extremely serious failure and consider whether relevant policies were complied with.

"Where appropriate we will identify where lessons can be learned and will make recommendations if further action is required."

The chairman of HMRC resigned last week, although it only emerged yesterday as Alistair Darling revealed the security breach to MPs in parliament.

He indicated that operational and administrative failings within the department may have contributed to the data being lost.

HMRC became the largest Whitehall department in 2005 after Gordon Brown – then head of the exchequer – merged the Inland Revenue and Customs and Excise.

There have been accusations that the fusion - which will result in 25,000 job cuts by 2011 – may have been responsible for the security breach.